The Securities and Exchange Commission of Pakistan (SECP) has revised minimum qualification for persons entering into agency contracts with insurers and such agents would be required to undergo a foundation course under SECP (Insurance) Rules. According to an SRO.649(I)/2015 issued by the SECP here on Friday, the SECP, after approval of the Securities and Exchange Policy Board, has amended Securities and Exchange Commission (Insurance) Rules, 2002.
The SECP said that for persons entering into agency contracts with insurers after the date of the notification, the minimum qualification shall be Higher Secondary School Certificate or equivalent, and in the case of a natural person, that person, or in the case of a body corporate or a partnership, each of its designated persons engaged in the business of insurance sales, shall have the said qualification. Such gents or designated person shall be required to undergo a foundation course based on a curriculum as approved by the Commission within a period of one year from the date of entering into agency contracts.
Previously, for persons entering into agency contracts after commencement of the Ordinance, the minimum qualification shall be Matriculate or Secondary School Certificate, and in the case of a natural person, that person, or in the case of a body corporate, each director, or in the case of a partnership, each partner, shall have the said qualification.
It is worth mentioning that under section 97 (minimum qualifications for agents) of the Insurance Ordinance, the commission may prescribe minimum qualifications for persons appointed as insurance agents, which may extend to educational requirements, experience in the industry and membership of an approved trade or professional organisation. Following is the text of the S.R.O.649(I)/2015 issued here on Friday.- In exercise of the powers conferred by sub-section (2) of section 167 of the Insurance Ordinance, 2000 (XXXIX of 2000) and having been previously published in the official gazette as required by sub-section (2) of section 167 of the Ordinance XXXIX of 2000 vide S.R.O.184(I)/2015 dated March 2, 2015, the Securities and Exchange Commission of Pakistan, after approval of the Securities and Exchange Policy Board, hereby makes the following amendment in the Securities and Exchange Commission (Insurance) Rules, 2002:
"(b) for persons entering into agency contracts with insurers after the date of this notification, the minimum qualification shall be Higher Secondary School Certificate or equivalent, and in the case of a natural person, that person, or in the case of a body corporate or a partnership, each of its designated persons engaged in the business of insurance sales, shall have the said qualification, and such agents or designated person shall be required to undergo a foundation course based on a curriculum as approved by the Commission within a period of one year from the date of entering into agency contracts, conducted by the respective insurer or an institute recognized by the Commission, and shall also be examined and certified by an institute. The agents or designated person shall also be required to attend a refresher course after every two years from such institute(s) as specified by the Commission for the purposes of continued professional education:
Provided that agents and designated persons may be given exemption from the requirement of foundation course who meet such criteria and requirements as may be approved by the Commission from time to time, but such exemption shall be availed through registering with an institute as approved by the Commission.
Provided further that agents or designated persons who are matriculate or hold Secondary School Certificate and have already completed a foundation course, in case of non-life insurance from Pakistan Insurance Institute and in case of life insurance from the respective insurer before issuance of this notification, shall stand exempted from the requirement of foundation course. Such person shall, however, be required to register with an institute as approved by the Commission within three months of issuance of this notification and attend a refresher course after every two years from such institute(s) as specified by the Commission for the purposes of continued professional education."